Investors were juggling a series of competing signals related to the economy and corporate earnings. After last night's close, entertainment streaming company Netflix posted very strong earnings driven by robust new subscriber growth. Shares jumped $54.99, or 16.5% to $388.72.

Before today's opening bell, fast-food giant McDonald's beat earnings expectations by a penny but reported a drop in same-store sales in the U.S. and said 2013 has been challenging. Shares rose 44 cents, or 0.5%, to $95.32.

However, Wall Street was rattled by a key reading on China's manufacturing which dropped below the key 50 level in January, according to HSBC. A reading below 50 on the HSBC flash manufacturing PMI suggests economic contraction.

"We think this reflects a continued slowdown in growth momentum rather than seasonal factors related to the Chinese New Year," Barclays told clients in a research report.

But a similar manufacturing reading in the euro zone came in above the key 50 level for the seventh consecutive month, suggesting that Europe's recovery continues.

"Investors seem to be taking a wait and see approach to the equity market in early 2014," notes Robert Haworth, senior investment strategist at U.S. Bank Wealth Management. "(That) is understandable following strong 2013 results and given the near-term economic uncertainty spurred by December's disappointing jobs report. "

For stocks to regain their upward momentum, "we continue to believe that higher earnings are required to push prices to meaningfully higher levels," Haworth told clients in a research note.

On Wednesday, the Dow ended down 0.25% to 16,373.34, while the Standard & Poor's 500 finished up 0.1% to 1,844.86 and the Nasdaq composite was up 0.4% tp 4,243.00.